BILL ANALYSIS                                                                                                                                                                                                    Ó



                                                                    SB 1263


                                                                    Page  1





          Date of Hearing:  June 28, 2016


                  ASSEMBLY COMMITTEE ON WATER, PARKS, AND WILDLIFE


                                 Marc Levine, Chair


          SB  
          1263 (Wieckowski) - As Amended June 20, 2016


          SENATE VOTE:  21-13


          SUBJECT:  Public water system:  permits


          SUMMARY:  Requires a person submitting an application for a  
          permit for a proposed new public water system to first submit a  
          preliminary technical report, with specified information, to the  
          State Water Resources Control Board (SWRCB) at least six months  
          before initiating construction of any water-related development.  
           Authorizes the SWRCB to deny a permit for a new public water  
          system under specified conditions.  Specifically, this bill:  


          1)Establishes a requirement that prior to a person submitting an  
            application for a permit for a proposed new public water  
            system to first submit a technical report to the SWRCB at  
            least six months before construction.


          2)Requires specific information to be included in the technical  
            report including an analysis of other public water systems  
            within three miles of the proposed new public water system and  
            the ability to connect to or utilize the resources from those  
            public water systems.  Additionally, requires the technical  








                                                                    SB 1263


                                                                    Page  2





            report to include an analysis of all water supply for the  
            proposed new public water system and the ability to meet  
            20-year water demand under a variety of hydrologic conditions.


          3)Authorizes the SWRCB to direct the applicant to engage in  
            negotiations to receive services from existing water systems.


          4)Makes specified exemptions from the requirement an applicant  
            submit a technical report.


          5)Subjects the ability of a local primacy agency to issue a  
            permit for a public water system to SWRCB oversight.


          6)Prohibits a city or county from issuing a building permit for  
            new residential development where a water supply source is  
            water transported by a water hauler, bottled water, a  
            water-vending machine or a retail water facility.


          EXISTING LAW:    


          1)Establishes the policy of the state that every human being has  
            the right to safe, clean, affordable, and accessible water  
            adequate for human consumption, cooking and sanitary purposes.  


          2)Vests the SWRCB with all of the authority, duties, powers,  
            purposes, functions and responsibilities, to enforce the State  
            Drinking Water Act (SDWA).  

          3)Prohibits any person from operating a public water system  
            unless he or she first submits an application to the State  
            Water Board and receives a permit.  









                                                                    SB 1263


                                                                    Page  3





          4)Requires the SWRCB, upon determination that an application for  
            a public water system is complete, to make a thorough  
            investigation of the proposed or existing plant, works,  
            system, or water supply, and all other circumstances and  
            conditions that it deems material, including any financial  
            assurance information.  


          5)Requires the State Water Board, following completion of its  
            required investigation, to issue or deny the permit for a  
            public water system.  Authorizes the State Water Board to  
            impose permit conditions, requirements for system  
            improvements, and time schedules as it deems necessary, to  
            ensure a reliable and adequate supply of water at all times  
            that is pure, wholesome, potable, and does not endanger the  
            health of consumers.  


          6)Requires any person who owns a public water system to ensure  
            that the system complies with drinking water standards.

          7)Permits the SWRCB to delegate drinking water quality  
            enforcement to a "local primacy agency" as defined.



          FISCAL EFFECT:  Unknown.


          COMMENTS: Requires a person submitting an application for a  
          permit for a proposed new public water system to first submit a  
          preliminary technical report, with specified information, to the  
          State Water Resources Control Board (SWRCB) at least six months  
          before initiating construction of any water-related development.  
           Authorizes the SWRCB to deny a permit for a new public water  
          system under specified conditions.  


          1)Author's statement: When Californians turn on their water at  








                                                                    SB 1263


                                                                    Page  4





            the kitchen sink, they assume that it's safe, quality drinking  
            water that meets all the government standards.  But in many  
            communities, especially those connected to the small public  
            water systems, the high quality of drinking water should not  
            be taken for granted.



            California has more than 7,600 public water systems and these  
            smaller systems can be challenged over the long term by their  
            lack of technical, financial and managerial abilities.  


            This bill gives the State Water Board a stronger role in  
            ensuring such systems are not approved if they are  
            unnecessary.


            SB 1263 will limit the proliferation of new, unsustainable  
            public water systems by creating a strengthened review process  
            for new system applications. With its requirements for a  
            preliminary technical report, SB 1263 will strengthen the  
            public water system permitting process by systematizing and  
            making more transparent the analytical due diligence that  
            developers typically do.


          2)Background: California has a challenge providing safe drinking  
            water to all of its residents. The SWRCB is responsible for  
            the state's drinking water program and estimates that 500  
            communities rely on public water systems that do not meet  
            drinking water standards.  We do not know exactly how many  
            Californians lack access to safe drinking water on a daily  
            basis, but it is on the order of millions of people.    
            Drinking water contamination disproportionally affects  
            disadvantaged communities that rely on groundwater as their  
            drinking water source.   Many small communities do not have  
            the technical, managerial, or financial capability to operate  
            what can be complex drinking water systems.








                                                                    SB 1263


                                                                    Page  5







            The SWRCB has primary enforcement authority to enforce federal  
            and state safe drinking water acts, and is responsible for the  
            regulatory oversight of about 8,000 public water systems  
            throughout the state.  Enforcement authority for approximately  
            5,500 small water systems, defined as systems with under 200  
            service connections, has been delegated to local health  
            officers through local primacy agreements.  


            The SWRCB primary authority lies in approving or disapproving  
            a permit for a new public drinking water system.  Once a  
            drinking water system is in place the actions that can be  
            taken to address problems with the system become more limited.  
             Under existing law the evaluation for approval of a permit is  
            focused on the immediate ability of a proposed new public  
            drinking water system to meet standards.  Existing law is not  
            clear on the authority of the SWRCB to evaluate the ability of  
            a proposed new public drinking water system to meet drinking  
            water standards prospectively. 


            This bill would allow the SWRCB to exercise greater evaluation  
            over a proposed new public water system.  The submission of  
            the required information in the technical report six months  
            prior to the submission of a permit application will give the  
            SWRCB the information necessary to make an evaluation of the  
            ability of the proposed new public water system's water  
            supplies to meet drinking water standards for the foreseeable  
            future.  The bill also gives the SWRCB the authority to deny a  
            permit if a determination is made that the proposed new system  
            will not be sustainable into the future.


          3)Suggested Technical Amendments:  Committee staff suggests the  
            following technical amendments.










                                                                    SB 1263


                                                                    Page  6





             a)   On page 6 lines 9-31 the bolded italicized language  
               should be added as follows:

          (1) If an existing public water system has not already sought  
          annexation of the service area of a proposed new public water  
          system from the local agency formation commission or the  
          applicant has not already sought an extension of services  
          agreement from an existing public water system, direct the  
          applicant to undertake additional discussion and negotiation  
          with any existing public water system meeting the requirements  
          of paragraph (1) of subdivision (c) that the state board  
          determines has the technical, managerial, and financial capacity  
          to provide an adequate and reliable supply of domestic water to  
          the service area of the proposed new public water system. The  
          state board shall not direct the applicant to undertake  
          additional discussion and negotiation if documentation submitted  
          to the state board demonstrates that additional discussion and  
          negotiation is unlikely to be successful, including, but not  
          limited to, documentation that a local agency formation  
          commission has already denied the application for an extension  
          of service or annexation, or that the existing public water  
          system has declined to apply to the local agency formation  
          commission for approval of an extension of services to, or  
          annexation of, the service area of the proposed new public water  
          system.

             b)   On page 6 lines 37-39 the bolded italicized language  
               should be added as follows:
           
          (f) (1)  An applicant shall comply with the state board's  
          directives as assigned in and consistent with subdivision (e)  
          before submitting an application for a permit for a proposed new  
          public water system under this chapter.

             c)   On page 8 in lines 1-13 the bolded italicized language  
               should be added as follows:

               3) The state board shall promptly acknowledge receipt of a  
               written notice described in paragraph (2). The state board  








                                                                    SB 1263


                                                                    Page  7





               shall have 30 days from the acknowledgment of receipt of  
               the written notice to issue a written notice to the  
               applicant that compliance with the requirements of this  
               section is necessary and that an application for a permit  
               of a new public water system under this chapter is not  
               complete until the applicant has complied with the  
               requirements of this section. A determination by the state  
               board that compliance with the requirements of this section  
               is necessary shall be final and is not subject to review by  
               the state board. A determination by the state board  
               pursuant to this subdivision is not considered a project  
               subject to Division 13 (commencing with Section 21000) of  
               the Public Resources Code.


          1)Prior and Related Legislation:


               a)     SB 552 (Wolk), would authorize the SWRCB to contract  
                 with an administrator to provide administrative and  
                 managerial services in specified disadvantaged  
                 communities.  To be heard in this committee on June 28,  
                 2016.


               b)     SB 88 (Committee on Budget), Chapter 27, Statues of  
                 2015, authorizes the SWRCB to order water system  
                 consolidation or extension of services.


          1)Supporting Arguments:  This bill will place reasonable  
            standards on new small public water systems throughout the  
            state by enhancing the permitting procedure required.  This  
            bill specifically includes a discussion of existing nearby  
            water systems, proposed sources of domestic water, estimated  
            costs of development and long-term operation and maintenance  
            relative to other options.  This will help strengthen the  
            permitting process and limit the proliferation of small,  
            unsustainable systems.  This will be an important tool for  








                                                                    SB 1263


                                                                    Page  8





            providing access to safe drinking water.    


          REGISTERED SUPPORT / OPPOSITION:




          Support


          California League of Conservation Voters


          Clean Water Action


          Community Water Center


          East Bay Municipal Utility District


          Environment California


          Environmental Working Group


          Leadership Counsel for Justice and Accountability


          Lutheran Office of Public Policy - California


          Natural Resources Defense Council


          Sierra Club








                                                                    SB 1263


                                                                    Page  9







          Tri-City Ecology Center


          Union of Concerned Scientists




          Opposition


          None on File




          Analysis Prepared by:Ryan Ojakian / W., P., & W. / (916)  
          319-2096